FranchiseCapitalRequirements Traditional

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DAI USA

Effective 1/2020
® US Dollar

Franchise Capital Requirements


Traditional Restaurants

General Breakdown for: Lower Cost Moderate Cost Higher Cost Method/When Due

When you sign Franchise


Initial Franchise Fee $15,000 $15,000 $15,000
Agreement

When you sign Intent to


Real Property 2,000 5,000 12,000
Sublease or Sublicense

Leasehold Improvements 75,000 150,000 200,000 Pro rata during construction

Before we will order


Equipment 7,500 11,500 15,500
equipment

Security System
2,450 2,850 3,550 When you place order
(Not including monitoring)

Freight Charge Prepaid when you order or on


8,000 10,400 14,000
(varies by location) delivery

Outside Signage 2,000 4,000 8,000 When you place order

Opening Inventory 4,400 5,225 6,050 Within 1 week of opening

Before we will order


Insurance 1,200 1,500 5,000
equipment

Supplies 500 900 1,300 Before opening

Training Expenses
2,500 3,500 4,500 During Training
(including travel & lodging)

Legal & Accounting 1,000 2,000 3,500 Before opening

Grand Opening Advertisement 2,000 3,250 4,000 Around opening

Miscellaneous Expenses
(business licenses, utility deposits 4,000 6,000 8,000 As required
& small equipment)

Additional Funds 3 months 12,000 26,000 42,000 As required

Estimated Total Investment $139,550 $247,125 $342,400

We have recently unveiled a new restaurant décor design, “Fresh Forward.” The “Fresh Forward” décor will be the required décor and equipment package for all new restau-
rants and relocations. The cost of construction and all décor elements and the cost of its installation in the restaurant shall be at your sole expense. This estimate does not
include costs to ship required décor elements, but as we are in the initial stages of this process, costs cannot be estimated at this time. We anticipate that costs to build-
out a non-traditional location will be higher than those indicated in the chart above in this item 7 but lower than the additional costs incurred in connection with the build-
out of a traditional location in accordance with the Fresh Forward décor. The costs to build-out a free-standing location with a drive-thru may be substantially higher than
those indicated in the chart for a traditional location. In the future, you will be required to remodel all of your existing locations to the “Fresh Forward” décor and equipment
package. We exclusively reserve the right to modify any element of the Subway® restaurant décor and equipment package.

Subway® is a registered trademark of Subway IP LLC ©2020 Subway IP LLC


CANADA
Effective 1/2020
® Canadian Dollars

Franchise Capital Requirements


Traditional Restaurants

General Breakdown for: Lower Cost Moderate Cost Higher Cost Method/When Due

When you sign Franchise


Initial Franchise Fee $15,000 $15,000 $15,000
Agreement

When you sign Intent to


Real Property 2,000 5,000 12,000
Sublease or Sublicense

Leasehold Improvements 86,000 141,000 186,000 Pro rata during construction

Before we will order


Equipment 4,500 6,500 7,500
equipment

Security System
1,000 2,000 5,000 When you place order
(Not including monitoring)

Freight Charge Prepaid when you order or on


5,000 6,000 7,500
(varies by location and method) delivery

Outside Signage 2,000 4,500 8,500 When you place order

Opening Inventory 2,500 3,500 5,000 Within 1 week of opening

Before we will order


Insurance 1,000 1,200 1,500
equipment

Supplies 600 900 1,500 Before opening

Training Expenses
2,500 3,500 5,000 During Training
(including travel & lodging)

Legal & Accounting 1,000 3,000 5,000 Before opening

Grand Opening Advertisement 2,300 2,500 2,700 Around opening

Miscellaneous Expenses
(business licenses, utility deposits 5,000 8,000 10,000 As required
& small equipment)

Additional Funds 3 months 13,000 28,000 43,000 As required

Estimated Total Investment $143,400 $230,600 $314,900

We have recently unveiled a new restaurant décor design, “Fresh Forward.” The “Fresh Forward” décor will be the required décor and equipment package for all new restau-
rants and relocations. The cost of construction and all décor elements and the cost of its installation in the restaurant shall be at your sole expense. This estimate does not
include costs to ship required décor elements, but as we are in the initial stages of this process, costs cannot be estimated at this time. We anticipate that costs to build-
out a non-traditional location will be higher than those indicated in the chart above in this item 7 but lower than the additional costs incurred in connection with the build-
out of a traditional location in accordance with the Fresh Forward décor. The costs to build-out a free-standing location with a drive-thru may be substantially higher than
those indicated in the chart for a traditional location. In the future, you will be required to remodel all of your existing locations to the “Fresh Forward” décor and equipment
package. We exclusively reserve the right to modify any element of the Subway® restaurant décor and equipment package.

Subway® is a registered trademark of Subway IP LLC ©2020 Subway IP LLC

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